Developer axes 2 major offshore wind projects in blow to Biden's green energy goals

Developer deals a blow to Biden’s green energy goals by canceling 2 major offshore wind projects

According to Douglas Kennedy of Fox News, the wind farm project in Massachusetts is posing a threat to the fishing industry.

Orsted, the global energy developer, has dealt a major blow to President Biden’s green energy goals by abruptly canceling two significant offshore wind projects off the coast of New Jersey. The cancellation of these projects is a setback for the rapid development of wind energy in the region.

According to recent reports, the Denmark-based energy company has announced that it will be discontinuing its Ocean Wind 1 and Ocean Wind 2 projects. The decision was made by the board of directors in response to various macroeconomic factors, including high inflation, supply chain issues, and increasing interest rates. These twin projects were particularly high-profile and had received personal support from the Democratic Governor of New Jersey, Phil Murphy, as well as being touted by the White House as evidence of the effectiveness of “Bidenomics”.

David Hardy, Orsted’s group executive vice president and Americas division CEO, announced that the company is forced to halt the development of Ocean Wind 1 and Ocean Wind 2. This decision was met with great disappointment, especially since New Jersey was on track to become a leader in offshore wind energy on both a national and global level.

“We are dedicated to promoting the growth of the renewable energy sector in the United States by generating sustainable energy that will result in job creation across various states and technologies, ranging from the Northeast to Texas,” stated Hardy. “Offshore wind energy is a crucial component in facilitating the achievement of America’s clean energy targets, which includes not only job opportunities but also the establishment of a domestic supply chain and the revitalization of the maritime industry.”

The Biden administration’s decision to put a halt on oil drilling has put his green energy goals at risk. Experts believe that this move may create a lot of uncertainty and could potentially harm the administration’s goal of transitioning to renewable energy. The decision to stop oil drilling could also have a significant impact on the economy and employment opportunities in the affected areas. Despite the potential risks, the Biden administration remains committed to its climate change goals and is determined to find alternative solutions to reduce carbon emissions.

In July, the Ocean Wind 1 project was approved by the federal government, but it has since been canceled. White House national climate adviser Ali Zaidi referred to the approval of the project as an example of “Bidenomics in action.” (Image credit: Drew Angerer/Getty Images | John Moore/Getty Images)

Hardy explained that Orsted’s sudden move is a result of its ongoing evaluation of its U.S. offshore wind portfolio. The offshore wind energy sector has been facing several economic challenges, including high inflation, which have put several developers, including Orsted, in a position to review their existing projects. In recent weeks, many developers have announced their plans to reassess their offshore wind projects due to these challenges.

The Bureau of Ocean Energy Management granted wind energy development leases during the Obama administration, which led to the proposal of Ocean Wind 1 years ago. Recently, the Biden administration gave formal approval for its construction in July, which has been considered a significant milestone in achieving the President’s clean energy goals and economic plan. The White House has cited the Ocean Wind 1 project as a prime example of success in clean energy initiatives.

The current administration, headed by President Biden, is taking swift action to industrialize the oceans surrounding the United States. Their main goal is to combat the devastating effects of climate change, which have wreaked havoc on the environment. However, some critics have labeled this plan as an “environmental wrecking ball,” expressing concerns about the potential negative impacts of this strategy on the ocean’s delicate ecosystems.

On July 5th, Ali Zaidi, the White House national climate adviser, attributed the recent surge in clean energy construction to Bidenomics. This was in response to the announcement of approval for the construction of another offshore wind project in New Jersey, which is expected to generate enough energy to power almost 500,000 homes. Zaidi emphasized that this significant expansion in the clean energy industry was not a coincidence but a result of Biden’s ambitious and purposeful approach towards building a sustainable future.

“He continued to express his gratitude towards President Biden’s leadership, emphasizing that the United States will take full advantage of the opportunities presented by offshore wind and other clean energy technologies. This will not only help to enhance the country’s energy security but also drive progress towards achieving our climate goals. In addition, the initiative will create numerous well-paying jobs throughout the manufacturing supply chain,” he stated.

During a meeting on June 23, 2022, President Biden used a chart comparing the size of wind turbines to emphasize the importance of the Federal-State Offshore Wind Implementation Partnership. The image, which was captured by Drew Angerer of Getty Images, shows the president’s dedication to renewable energy and his efforts to promote wind power.

According to Interior Secretary Deb Haaland, the approval of Ocean Wind 1 marks a significant achievement in the government’s mission to tackle climate change and generate well-paying union jobs to fuel the nation’s growth.

On July 20, the White House released a fact sheet that showcased Ocean Wind 1 as a prime demonstration of Bidenomics in practice.

A recent letter has revealed that top officials have warned the Biden Administration about the potential dangers that wind energy projects may pose to the fishing industry. The officials have expressed their concerns regarding the negative impact that these projects could have on the livelihoods of fishermen. This warning comes at a time when the administration is pushing for the development of offshore wind farms in the US. The letter highlights the need for a thorough analysis of the impact that these projects may have on the fishing industry, as well as the environment.

According to a statement from White House spokesperson Michael Kikukawa, the Biden-Harris Administration has been actively supporting the growth of the American offshore wind industry from the very beginning. The Administration’s efforts have been paying off, as evidenced by the $7.7 billion increase in investments in the industry since President Biden signed the Inflation Reduction Act.

According to the speaker, although there are some challenges caused by macroeconomic factors, the U.S. offshore wind industry is still expanding and gaining momentum. This growth is leading to the creation of well-paying union jobs in manufacturing, shipbuilding, and construction. Additionally, it is strengthening the power grid while providing new clean energy resources for American families and businesses.

According to Kikukawa, there are several other projects that have been approved by the Interior Department recently.

Orsted’s announcement has the potential to pose a challenge to the Biden administration’s ambitious target of deploying 30 gigawatts of offshore wind energy by 2030. This goal is the most ambitious of its kind globally, and any disruptions could be detrimental to its success.

At present, only two small-scale pilot offshore wind farms are up and running, with numerous larger projects along the East Coast in various stages of development and authorization. However, even if all of the proposed endeavors were to be completed by 2030, the administration would still fall significantly short of achieving its 30-gigawatt objective.

On Tuesday, Interior Secretary Deb Haaland expressed her commitment to the clean energy future, as proposed by the Biden-Harris administration. She emphasized that this approach not only addresses the climate crisis but also helps in reducing energy costs while creating well-paying union jobs in various sectors, including manufacturing, shipbuilding, and construction.

The New York State Public Service Commission made a decision in October that could potentially render offshore wind energy projects impracticable. This decision came after a group of developers requested to renegotiate existing contracts due to rising inflationary pressures. Unfortunately, their requests were denied by the commission.

According to Daniel Turner, the founder and executive director of energy group Power The Future, the consequences are always unpleasant when idealistic green initiatives collide with the harsh realities of the world. He stated that despite receiving billions in taxpayer support, wind power projects are failing time and time again.

According to Turner, the residents of New Jersey are the ones who will ultimately suffer from the consequences of this situation. While Governor Murphy may express his frustration and desire to recover funds from the company, the reality is that the green agenda championed by him and other extreme leftists is what led to this outcome. Unfortunately, for families in the Garden State, this is of little consolation as they face the prospect of a harsh winter with skyrocketing energy expenses.

Orsted’s two projects, Ocean Wind 1 and Ocean Wind 2, would have encompassed almost 200 wind turbines, spread across 161,000 acres in the Atlantic Ocean off the coast of Cape May County. The turbines would be situated as close as nine miles from the county’s coastline and would be visible from every beach within its jurisdiction.

By 2030, the Biden administration has set a target of approving 30 gigawatts of offshore wind energy. Nevertheless, the proposals for development have encountered resistance from local communities concerned about their potential environmental and economic consequences. (Getty Images)

There were plans for two transmission line corridors and a single substation in Cape May County as part of the project. Ocean Wind 1 was projected to commence operations by 2025, while Ocean Wind 2 was anticipated to become operational a few years later.

In a statement released on Wednesday, Governor Murphy expressed his outrage at Orsted’s decision to abandon its commitments to New Jersey. He criticized the company for calling into question their credibility and competence, especially since they had made public statements just a few weeks ago regarding the progress and viability of the Ocean Wind 1 project. The Governor’s disappointment is palpable, and it is clear that Orsted’s decision has left a sour taste in his mouth.

The statement made by the official asserted that he had instructed his Administration to thoroughly examine all legal options available and take all essential measures to ensure that Orsted complies with its obligations without any further delay.

Last month, a group of stakeholders, led by Cape May County, filed a lawsuit against the Biden administration. They contended that the administration had approved Ocean Wind 1 without a thorough evaluation of its negative impacts and had done so too hastily.

Len Desiderio, County Commission Director, expressed his happiness and relief at the decision to halt the Ocean Wind One project and abandon Ocean Wind Two. He stated that it was a momentous day for the Atlantic Ocean, as well as for the whales and dolphins that inhabit it. Despite facing naysayers who believed that their efforts were futile, Desiderio and his team persisted and successfully put an end to the risky and irresponsible Ocean Wind projects.

He expressed satisfaction that the County Board of Commissioners and various business communities and protest groups did not pay heed to the negative voices. Being located in the southernmost tip of New Jersey, their county may be small, but they were always aware of the impact on their economy, environment, and way of life.

On Wednesday, Governor Phil Murphy of New Jersey expressed concerns about the credibility and competence of Orsted in light of their recent announcement. This statement comes as a reaction to Orsted’s decision, which has raised questions and doubts about the company.

According to a statement made by Smith, it appears that Orsted, despite receiving significant taxpayer subsidies and initial projections of significant ratepayer increases, has come to the conclusion that they will still suffer losses. This decision from Orsted marks the first step towards revealing the economic unsustainability and environmental risks associated with ocean wind turbines that are as big as the Chrysler Building in New York City. With Orsted now pulling out of the deal, it is expected that similar projects off the coast of New Jersey may eventually slow down and come to a halt.

According to a statement made by Rep. Frank Pallone, the withdrawal of Orsted is seen as a triumph for the people of New Jersey, environmentalists, as well as commercial and recreational fishermen. He stated that he, alongside Rep. Jeff Van Drew, have worked tirelessly to highlight the perils of the enormous ocean industrialization plans that were intended for the Jersey Shore. Pallone noted that this development is a significant setback for the Biden and Murphy Administrations, who attempted to push the project through despite its lack of proper vetting. Furthermore, he pointed out that the administrations intended to pour billions of taxpayer dollars into these ill-conceived projects.

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